Darden Says Lawsuit, Filed by Pension Funds, Has 'No Merit'

A group of shareholders sued Darden Restaurants Inc. on Friday, alleging that recent changes to its corporate bylaws are designed to frustrate stockholders' right to vote on a plan to shed its Red Lobster chain.

The lawsuit, filed by pension funds for the City of Birmingham, Ala., as a potential class action on behalf of other stockholders, is a boost for activist investor Starboard Value LP, which for months have urged the company to...